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Top Risk Officers Remain at Insurer’s Helm
Inside American International Group Inc. (NYSE:AIG), a group of top executives called the Credit Risk Committee oversaw some of the company’s biggest bets, such as the insurer’s foray into credit-default swaps. But even after a $173 billion government bailout, this group, which reviewed and approved risk-taking decisions, remains largely unchanged.
Obama Seeks JPMorgan, Goldman Support on Bank Plan
Executives from some of the nation’s largest banks began arriving at the White House as President Barack Obama seeks support for his plan to stabilize the financial system and move beyond the furor over bailouts and bonuses. Jamie Dimon of JPMorgan Chase & Co. (NYSE:JPM), John Mack of Morgan Stanley (NYSE:MS) and Camden Fine, president of the Independent Community Bankers of America, arrived for the noon meeting of as many as 15 banking executives such as chief executive officers Vikram Pandit of Citigroup Inc. (NYSE:C) and Lloyd Blankfein of Goldman Sachs Group Inc. (NYSE:GS)
U.S. may give GM another 30 days to restructure
General Motors Corp. (NYSE:GM) isn’t likely to meet a government-set restructuring deadline in order to receive more taxpayer help, but President Barack Obama’s auto industry task force looks willing to extend the deadline by 30 days, according to a report Friday in The Wall Street Journal. Reports of a possible reprieve sent shares of GM more than 10% higher to $3.78 in early action, placing it among the few gainers on the Dow Jones Industrial Average.
Fed Buys $7.541 Billion of Treasuries to Lower Borrowing Costs
The Federal Reserve bought $7.541 billion of Treasuries in its second outright purchase of U.S. government debt in three days as part of the central bank’s efforts to lower consumer borrowing rates. Seven of the 18 securities maturing from April 2011 through April 2012 listed for possible acquisition were bought, according to the Federal Reserve Bank of New York Web site.
Google cuts 200 in second reduction of downturn
Google Inc. (NASDAQ:GOOG) said Thursday it will cut nearly 200 jobs in its global sales and marketing teams due to unchecked growth and “overlapping organizations.” The search giant announced the cuts in a posting on a company Web site. Once known for hiring prodigiously and lavishing employees with perks, Google has recently sought tighter control over costs. That comes even as the company has weathered the downturn relatively well.
Crude Oil Falls as Stronger Dollar Curbs Appeal of Commodities
Crude oil in New York fell the most in two weeks as a stronger dollar reduced the appeal of commodities to investors. Oil dropped as much as 4.7 percent after the U.S. currency rebounded against the euro on evidence the recession is deepening in Europe. A stronger dollar makes commodities less attractive as an alternative investment.
U.S. Raises Auto Fuel-Economy to 27.3 MPG for 2011
Cars and light trucks will be required to meet a U.S. fuel-economy average of 27.3 miles per gallon for 2011 models, the Obama administration said. The guidelines, posted online today for publication in the Federal Register, carry out a 2007 law intended to curb emissions and fuel use. The 2011 standard raises mileage by 2 mpg, an administration official said yesterday.
Air France-KLM shares slump on warning
Shares of Air France-KLM (EPA:AF) dropped as much as 7% in Paris trade Friday as Europe’s largest airline made its fifth profit warning of the year, and warned of a loss for this year and next as world trade deteriorates and corporate travel slumps. For the year to March 31, Air France-KLM said it will record a 200 million euro ($272 million) loss — after saying only a month ago that it would make an operating profit.
Facebook Is Hunting for More Money
Over the past few weeks, Facebook has been trying to secure as much as $100 million in debt financing, according to two sources with knowledge of the proposed transaction. Specifically, the company is looking for a handful of credit lines that would help it finance leases for the growing number of computers it needs to run its popular Web site. Such leases are used by well-known companies, including Google’s (NASDAQ:GOOG) YouTube video service, and are a common way to finance equipment purchases in Silicon Valley.
Las Vegas Project Weighs Bankruptcy
City Center, the $8.6 billion Las Vegas development owned by MGM Mirage (NYSE:MGM) and DubaiWorld, is preparing for a potential bankruptcy filing that could bring the massive project to a halt, according to people familiar with the situation.
IBM-Sun Acquisition May Make ‘1 Plus 1’ Less Than 2
International Business Machines Corp.’s (NYSE:IBM) acquisition of Sun Microsystems Inc. (NASDAQ:JAVA) could be bad news for the small suppliers that have grown up around the computer industry as their largest customers fuse. Network gear makers QLogic Corp. (NASDAQ:QLGC) and Emulex Corp. (NYSE:ELX) would be among suppliers with fewer places to sell their products, channeling pricing power to buyers.
As Sales Dry Up, Some Software Companies Resort to Freebies
Some technology companies are taking an unorthodox approach to selling software in the recession: giving it away. Unlike past promotions from America Online (ETR:AOL) or makers of antivirus software, these giveaways are business software that typically costs thousands of dollars or more. And they aren’t limited-time trials: companies get to keep the free software.
